One of the former partners of a troubled utilities company argued in court documents filed Friday he has no personal responsibility for a business deal gone wrong with Bethlehem Township, Pa.

Patrick "PJ" McLaine, the one-time treasurer of Municipal Energy Management Inc., said in court documents he was not a party of the company's failed deal with Bethlehem Township. He denied allegations the company existed solely so he and partner Robert Kearns could pilfer funds from unsuspecting clients, and he asked a judge to dismiss the charges against him.

Bethlehem Township sued Moscow, Pa.-based MEM in 2009 after the company failed to purchase the township's street lights from PPL and maintain them at a low cost. The township provided MEM with $832,460 to begin the transaction, but the purchase was never made. MEM, which was to receive $50,000 for ushering the deal through, never gave the township straight answers about the delay, according to the suit.

In the court documents filed today, McLaine, of Elmhurst, said MEM did its due diligence to complete the deal, but PPL refused to cooperate. McLaine also denied being a current officer of the company, but he said he was at all points relevant to the suit.

"MEM has been unable to complete its obligations ... due to the unreasonable regulation restrictions, changes and bad faith obstructions and hindrances of PPL," says his attorney, Sal Cognetti Jr., in the suit. "MEM engaged in myriad efforts to negotiate the street light purchase from PPL and complete the agreement."

PPL spokeswoman Lissette Santana said PPL does not comment on pending litigation.

Separate from the civil suit, back in February Northampton County District Attorney John Morganelli announced that a grand jury found enough evidence to charge McLaine, 65, and Kearns, 48, with theft, conspiracy and misapplication of entrusted funds.

The township's money, Morganelli said, was pooled with other cash and used to give Kearns a bonus of $366,600 and McLaine a bonus of $499,945. The company did not even bother to contact PPL about the transaction until six months after their deadline, Morganelli said.

The two men are due for arraignment on the criminal charges in Northampton County Court on May 3.